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Well - if the Fed stops buying MBSes and interest rates go up - flippers in highly speculative markets (almost everywhere ATM) are likely to have a bad time.
by onlyrealcuzzo 5y ago
Well - if the Fed stops buying MBSes and interest rates go up - flippers in highly speculative markets (almost everywhere ATM) are likely to have a bad time.
- toomuchtodo 5y agoRight. This is Zillow getting out before the Fed tapers, interest rates go up, and real estate sales and values go down.
- datavirtue 5y agoZillow paid too much. Tapering isn't going to have a material effect on new mortgages or home sales.
- onlyrealcuzzo 5y agoDo you think lower interest rates had no effect on prices? Or do you think it did - but that raising rates for some reason won't have an effect?
- toomuchtodo 5y agoYes, they did, but they could’ve still come out ahead if monetary policy wasn’t about to significantly shift and the carrying costs were reasonable. Rising interest rates is absolutely going to have an impact on home values and mortgage rates. What it does to home transaction velocity is yet to be seen.
- sbierwagen 5y agoThat's exactly what the Fed is expected to do: https://www.reuters.com/business/wall-street-banks-step-up-preparations-fed-tapering-volatility-2021-11-02/ https://www.reuters.com/business/wall-street-banks-step-up-p...